India’s Economic Growth Forecast Raised to 7% for 2024-25
The World Bank has increased India’s economic growth forecast from 6.6% to 7% for the financial year 2024-25. This adjustment is attributed to a larger-than-expected agricultural output and policies aimed at fostering employment growth, which are expected to boost private consumption.
In its South Asia’s Growth forecast report, released on October 10, the World Bank highlighted these factors as key contributors to India’s economic performance.
Other global organizations have also revised their forecasts for India. The International Monetary Fund (IMF) raised its growth projection for 2024 from 6.8% to 7%, reinforcing India’s position as the fastest-growing economy among emerging markets. Similarly, the Asian Development Bank (ADB) forecasted a 7% growth for FY2024 and 7.2% for FY2025, citing strong agricultural growth due to an above-average monsoon.
The Reserve Bank of India (RBI) also projected a GDP growth rate of 7.2% for FY25, supported by robust quarterly performances, according to RBI Governor Shaktikanta Das.
Overall, South Asia’s growth is expected to reach 6.4% this year, making it the fastest-growing region globally.
Doubts Revealed
World Bank -: The World Bank is an international organization that provides financial and technical assistance to developing countries to help them improve their economies and reduce poverty.
IMF -: The IMF, or International Monetary Fund, is an organization that works to stabilize the global economy by providing financial support and advice to countries facing economic difficulties.
ADB -: ADB stands for Asian Development Bank, which is a regional development bank that aims to promote economic growth and cooperation in Asia and the Pacific region.
GDP -: GDP stands for Gross Domestic Product, which is the total value of all goods and services produced in a country in a year. It is used to measure the economic performance of a country.
Reserve Bank of India -: The Reserve Bank of India (RBI) is the central bank of India, responsible for regulating the country’s currency and monetary policy to ensure financial stability.
FY2024 -: FY2024 refers to the fiscal year 2024, which is a one-year period used by governments and businesses for accounting purposes. In India, it usually starts on April 1 and ends on March 31 of the following year.
South Asia -: South Asia is a region in Asia that includes countries like India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka, and the Maldives. It is known for its diverse cultures and rapidly growing economies.
